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3. The Revenue relied upon the findings of the lower authorities to submit that as the DGHS cancelled the CDEC certificate for non-fulfillment of the conditions, therefore the goods are not entitled for the duty exemption provided by Notification No.64/88. Hence the demand is rightly made.

4. We find that the applicant has claimed the benefit under Notification No. 65/88 dated 1.3.1988 and as per the Notification, the duty comes to approximately Rs.1,50,000/-. In these circumstances, the applicant is directed to deposit an amount of Rs.1,50,000/- (Rupees one lakh and fifty thousand only) within eight weeks. On deposit of the above mentioned amount, the pre-deposit of the remaining amount of duty and penalty is waived and recovery of the same is stayed for hearing of the appeal.